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Baker Hughes Announces Agreement with ReedHycalog

HOUSTON, May 22 /PRNewswire-FirstCall/ -- Baker Hughes Incorporated
(NYSE: BHI) announced today that it has reached reciprocal license agreements
with ReedHycalog, a division of National Oilwell Varco, Inc. (NYSE: NOV)
regarding outstanding patent infringement claims and counter-claims. As part
of the agreements, Baker Hughes and ReedHycalog have agreed to a cross license
of the disputed technologies. Baker Hughes will pay ReedHycalog $70 million
in royalties for prior use of certain patented technologies and will pay a
minimum of $30 million in royalties for future use. ReedHycalog has agreed to
pay royalties for the license of certain Baker Hughes patented technologies.
Baker Hughes Oilfield Operations, Inc. will be dismissed from and have no
liability, and will release ReedHycalog from all counter claims, in connection
with the previously disclosed litigation currently pending in U.S. District
Court, Eastern District of Texas.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this
release) contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, (each a "Forward-Looking Statement"). The
word "will," and similar expressions, are intended to identify forward-looking
statements. There are many risks and uncertainties that could cause actual
results to differ materially from our forward-looking statements including the
amount and timing of royalty payments. These forward-looking-statements are
also affected by the risk factors described in the company's Annual Report on
Form 10-K for the year ended December 31, 2007; the company's subsequent
quarterly reports on Form 10-Q; and those set forth from time to time in our
other filings with the Securities and Exchange Commission ("SEC"). The
documents are available through the company's website at
http://www.bakerhughes.com/investor or through the SEC's Electronic Data
Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. We
undertake no obligation to publicly update or revise any forward-looking
statement.

The Forward-Looking Statements contained in this news release are also
subject to the following risk factors:

Our expectations regarding the payment of any minimum royalty amount to
ReedHycalog are subject to certain contingencies, such that if a contingency
were to occur, we would have no further obligation to pay any portion of the
unpaid minimum royalty. However, in no case would we receive a refund of any
portion of the minimum royalty paid before the occurrence of such event.